Pupils calculate compound interest and depreciation to analyse car finance.
Scenario
Pupils are looking at car financing options to understand the potential costs of borrowing. To do this, pupils will assess compound interest charged on loans and depreciation of car values.
Curriculum references
| National Curriculum 16 | Set up, solve and interpret the answers in growth and decay problems, including compound interest and work with general iterative processes. |
| OCR 5.03a | Calculate simple interest including in financial contexts. Solve problems step-by-step involving multipliers over a given interval, for example, compound interest, depreciation, etc. Express exponential growth or decay as a formula. Solve and interpret answers in growth and decay problems. |
| AQA R16 | Set up, solve and interpret the answers in growth and decay problems, including compound interest. And work with general iterative processes.
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| Edexcel R16 | Set up, solve and interpret the answers in growth and decay problems, including compound interest. And work with general iterative processes. |